Smart energy management with IIoT has become a necessity of business strategy of industrial organizations. Companies are taking a close look at energy initiatives to identify opportunities to reduce cost, decarbonize and increase resilience.
A recent partner study revealed that smart energy management systems can not only help reduce energy consumption by 45%, but also decrease overall cost by 20% and maintenance cost by 20%. Let's first take a look at the the trends that are converging in the industrial sector.
1) Firstly, the shift toward Industry 4.0 or Digital Transformation of manufacturing processes and products.
2) Secondly, the digitization of industrial fleets, processes, and buildings in line with the broader energy transition taking place across the economy.
3) Thirdly, the digital transformation and electrification of energy management.
Digital transformation and technologies such as the cloud, artificial intelligence (AI) and the Internet of Things (IoT) are bringing widespread connectivity to everything from machines on production lines to heating and cooling systems to office and factory lighting.
This connectivity, in turn, enables the management, optimization and maintenance of many resources in a building through data analysis and understanding.
Insights and better management skills can also lead to cost savings and cleaner options, more flexible and flexible power supply.
Electrification of industrial fleets
Another trend is the electrification of heating and cooling of industrial equipment, processes and building spaces in accordance with the broader energy transition of the economy.
The share of electricity in all industrial energy is currently only 11% consumption, with natural gas and other fuels accounting for the rest.4 However, the use of electricity is growing in importance as industrial firms actively seek ways to electrify their energy use as part of broader sustainability efforts.
Citing pressure from investors, customers and employees, industry leaders are interested in the ways in which electrification could support their environmental, social and corporate governance (ESG) goals, particularly as they relate to reducing carbon emissions.
Digital transformation and electrification of energy management:
A third trend that converges with digital transformation and electrification is energy management, which involves monitoring and optimizing energy use to achieve goals such as cost savings, carbon reduction and sustainability.
Resilience becomes a priority when considering energy management for industrial companies due to recent severe weather or climate events such as hurricanes, fires and ice storms.
Industry leaders are increasingly concerned about maintaining the availability of their critical assets, and in the survey, manufacturing leaders cited weather-related power outages as the biggest threat to their current power supply.
Benefits of IoT in smart energy management :
It has been a while since the adoption of the Internet of Things in the energy sector, but we have started to see its benefits. Smart energy networks in cities or EMS in an office building or industrial plant are examples of smart energy management. Below are some of the key benefits of integrating IoT into energy management and control processes.
Companies around the world are implementing intelligent energy management systems to increase sustainability. The reason is that these systems are about 50% more energy efficient than traditional technologies. Preserving the ecosystem is the responsibility of every company, but it is not the only motivator. The reality is that many customers care about sustainability, and they will definitely be more satisfied knowing that you put sustainability first in your operations.
Green Energy Integration
With energy monitoring sensors, energy consumption data and utilities, you can better understand how to maximize the use of renewable energy in various services. It also helps you implement fixed energy saving practices.
Optimization of Active maintenance
Sensors can be used to measure the performance and condition of equipment and machinery in distribution networks and power plants. It is similar to combined technology in industrial enterprises. In the same way, for example, real estate companies can digitize and process their stocks.
Intelligent energy management with IoT is not the only reason why electricity traders and utilities are investing heavily in modernization. In addition, they are trying to optimize labor costs and improve automation by reforming their operations. For example, IoT-ready manufacturers can improve their maintenance operations and automate asset management locally.
Reduce Operating Costs
Historically, energy costs have increased in the last few years. The significant increase in the costs have compelled companies to prioritize energy saving and reduce the consumption of electricity. For example, in the oil and gas industry Power and fuel consumption are a significant cost component of many resource classes, especially maturing assets and offshore oil and gas. But companies by proactively monitoring critical equipment and overall production systems, can ensure optimal energy use reducing consumption by 5% to 15%.
Predictive Analysis of Energy Consumption
Combining an energy management system with machine learning algorithms and Internet of Things technology gives you a tool that predicts your future energy consumption. Using the tool's insights, energy companies can create a robust and data-driven energy production strategy. They can also help utilities improve their pricing models based on demand.
Proactive algorithms help identify potential problems in your operations before they happen. This allows you to take proactive measures instead of wasting time and resources on the consequences of failure. Energy suppliers can, for example, gain insight into energy consumption trends and forecast load peaks. In this way, they can develop strategies to avoid congestion and balance demand.
Dealing with power outages and accidents
If you can't be proactive in a scenario like a power outage or natural disasters, you can still use intelligent analytics systems. These systems are widely used to find problems and reduce damage. For example, using sensor data, users can find the root cause of a problem, assess the severity of damage and develop an effective recovery plan.
At Syook, we are helping industries to transform energy conservation and drive cost efficiencies. Our solution is meant to help your business enhance operational efficiency, reduce cost, and embrace sustainable practices, contributing to a greener and cost-effective future.